The United States and Japan will step up their defence cooperation to deal with the threat from nuclear-armed North Korea as tensions in East Asia remain high, officials from the two allies said on Thursday.

Cancer care big health winner in budget

Cancer care has been the biggest winner in health from Tuesday's federal budget, but smokers will have to pay seven cents more for a packet of cigarettes.

Health was also one of the major areas of savings as Treasurer Wayne Swan looked to limit the deficit, with more than $1.7 billion over four years collected through changes to Medicare.

Cancer care received $226 million over four years in Tuesday's budget, with $55.7 million of that going to an expanded BreastScreen Australia program.

Under the measure announced by Health Minister Tanya Plibersek on Sunday, the target age range for women will be widened from 50-69, to include woman up to 74 years old.

An additional 70,000 will get a mammogram reminder because of the funding, the government says.

The increased cancer care funding will see $18.5 million spent on a new Prostate Cancer Research Institute, while $29.6 million over two years will go to help with the dispensing of chemotherapy medicines.

The McGrath Foundation Breast Care Nurse initiative will also receive $19.5 million over four years.

Related Articles

Following on from their successful plain packaging reforms, the government announced tobacco excise would now be indexed to average weekly ordinary time earnings rather than inflation.

The change will see the costs of cigarettes go up, with a typical packet of 25 cigarettes rising by seven cents.

The $1.733 billion savings in Medicare include raising the threshold of the Medicare Safety Net to $2,000 from its current $1221.90.

The indexation of the Medicare Benefits Schedule will be realigned with the financial year to save $664.4 million over four years.

Meanwhile, a further $119.6 million over four years will be recovered by putting an end to double billing by GPs, who the government says have been claiming a rebate for a standard consultation and chronic disease management for the same patient on the same day.

The Australian Medical Association (AMA) accused the government of ripping $664.3 million out of primary health care.

It said the delayed indexation of the Medicare Benefits Schedule from November to July next year was effectively a freeze.

AMA President Steve Hambleton said "the sicker you are, the more you will pay".

"The government is getting sick people to help fix the budget black hole," Dr Hambleton said.

Dr Hambleton also attacked the increase to the Medicare Safety Net threshold, saying it would push up health costs for families.

"Some people may choose to put off seeing their doctor," he said.

But Federal Health Minister Tanya Plibersek said the budget reflected current health and economic challenges.

"More and more calls are being made on the health dollar," Ms Plibersek said.

"We have rigorously examined programs and priorities to ensure funds are directed where they are best used and most needed."

Ms Plibersek said the budget allocated an additional $871 million on last year for public hospitals, taking total funding to $14.9 billion in 2013-14.

The government would also provide $1.3 billion over the next four years in extra funding for GP visits, providing an additional 14.1 million GP services over that time.

The $226.4 million World Cancer Care Package would reinforce Australia's position as a world leader in cancer research, prevention and treatment, she said.

The Consumer Health Forum said there was little "hip pocket pain" relief.

"Medicare is already under strain," forum chief Carol Bennett said in a statement.

"We expect to see GP bulk billing drop and even greater pressure on doctors to speed up patient consultations."

Council on the Ageing chief Ian Yates welcomed the breast, prostate and bowel cancer measures.

The additional funding for cancer care will save thousands of older Australians from a premature death, he said.